V. K. MEHROTRA, J.

( 1 ) THE following questions have been referred by the Income-tax Appellate Tribunal, Allahabad bench (hereinafter "the Tribunal") under Section 256 of the I. T. Act, 1961 (for brief "the Act"), for the opinion of this court :

" (i) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the income of the assessee was liable to be assessed as income from other sources ? (ii) If the answer to question No. (i) is in the negative, was this income from property, as claimed by the Department, or business income, as claimed by the assessee ? (iii) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in rejecting the assessees claim that this income was exempt from tax on the principle of mutuality? "

( 2 ) THE facts : The assessee, "cawnpore Club Ltd. ", is a company and runs a club at Kanpur for the benefit of its members. Out of 15 rooms in its annexe, 13 rooms were let out to members of the club on payment of Rs. 250 per month per room and during the previous year pertaining to the assessment year 1971-72, the total rent collected by the assessee from these rooms amounted rs. 36,547. The rem

Click Here to Read the rest of this document